Academic Council Endorses Yudof Plan on Retirement Benefit Changes

The Academic Council has endorsed the Yudof proposals for changes in post-employment benefits (pension, retiree health care) that will presumably be adopted by the Regents at the December special session.

Below is the text of a letter confirming the endorsement. I have verified that the letter is a public document, although – at this writing – it has not yet been posted on the systemwide Senate website.

November 24, 2010

MARK YUDOF, PRESIDENT

UNIVERSITY OF CALIFORNIA

Re: Post-Employment Benefits

Dear Mark:

I am pleased to advise you that at its meeting on November 22, 2010, the Academic Council unanimously endorsed your recommendations to the Board of Regents regarding post-employment benefits. I thank you for the consideration that you gave to staff and faculty concerns regarding the initial recommendations of the Post-Employments Benefits Task Force.

I also attach a separate resolution enacted by the Academic Council regarding plans developed by Vice President and Chief Financial Officer Peter Taylor and Associate Director of Strategic Initiatives Maria Anguiano to finance initial employer contributions to UCRP by borrowing from the short term investment pool (STIP). The Council, adopting a resolution proposed by the UC Committee on Planning and Budget and endorsed by the UC Committee on Faculty Welfare, urges that borrowing from STIP be done to the extent possible to fund contributions required on the state funded compensation base. Further, to the extent that STIP borrowing is used to fund contributions required from non-state funded payroll sources, the resolution calls for a plan to be developed to ensure repayment from those non-state sources. For your information, I attach copies of the UCPB and UCFW letters in support of this resolution.

Sincerely,

Daniel L. Simmons, Chair, Academic Council

Or, to summarize:

UPDATE: The letter is now posted at http://www.universityofcalifornia.edu/senate/DS_MGYrePEBpplandSTIP.pdf